Caesars Entertainment has indicated a decline in revenue and profits from its Las Vegas operations for 2025 due to weaker consumer demand in the leisure sector, even as its digital segment achieved record quarterly EBITDA and management anticipates ongoing revenue growth.
The gaming company reported $4.05 billion in net revenue from its Las Vegas venues in 2025, a decrease of 4.7% compared to the previous year. The net income from these operations dropped 19.6% to $703 million.
For the fourth quarter, Caesars’ Strip properties recorded $1.04 billion in net revenue, reflecting a 3.4% year-over-year decline, while net income decreased by 4.7% to $182 million.
On a company-wide basis, Caesars announced $11.5 billion in net revenue for 2025, an increase of 2.4% compared to the prior year, but experienced a net loss of $502 million, primarily due to the absence of over $350 million in one-off gains from asset sales in 2024.
Chief Executive Thomas Reeg dismissed worries about Las Vegas demand. “I believe this is just a normal cycle within the leisure industry for us,” Reeg stated. “There’s no crisis occurring in Vegas; it’s just typical cyclical behavior, and it will resolve itself.”
Reeg expressed that “the appeal of the (Las Vegas) market remains unchanged,” adding that he felt “optimistic” about the upcoming year.
Las Vegas visitor numbers dipped by 7.5% to 38.5 million in 2025, marking the first yearly decline since the pandemic. Competitor MGM Resorts International also reported similar trends, with $8.4 billion in revenue from Las Vegas, down 4%, alongside core operating earnings of $2.9 billion, an 8% drop.
Caesars leadership noted that robust group and convention business helped mitigate the reduced leisure demand. Reeg pointed out that “peak events and weekends, as well as large conferences, are performing well. It’s the shoulder periods that are presenting challenges.”
President and Chief Operating Officer Anthony Carano remarked that “full year same-store enterprise net revenues rose by $266 million or 2% year over year,” and added that “our diversified portfolio provided consolidated net revenues of $2.9 billion in the fourth quarter, a 4% increase year over year, and an adjusted EBITDAR of $901 million, up 2% year over year.”
In Las Vegas, same-store adjusted EBITDAR was $447 million in the fourth quarter, compared to $477 million the previous year. Occupancy remained at 92%, although the average daily rate declined by 5%. Carano stated there was “a sequential quarterly improvement in occupancy and rate trends as anticipated, resulting in a 6% EBITDA decline in Q4, an improvement compared to Q3.”
The digital business segment shone brightly. During the fourth quarter, Caesars Digital generated net revenue of $419 million and adjusted EBITDA of $85 million—both representing a record for any quarter, with a normalized hold-adjusted EBITDA of $90 million.
Eric Hession, president of Caesars Digital, stressed a 28% increase in iCasino net revenue and noted a 19% rise in total monthly unique payers to 585,000.
Hession added, “We continue to envision a business capable of achieving 20% top-line growth, with 50% flow-through to EBITDA, keeping us on track to meet our targets.”
Regionally, revenues increased by 4% year over year, although adjusted EBITDAR saw a slight decline due to adverse winter weather conditions in December.
Looking forward, Reeg indicated: “I expect continued sequential improvement in the first quarter compared to Q4. The second quarter appears more promising. The second half of the year will depend on the performance of leisure customers.”